The United States eased export controls for high technology product sales to India, granting it the same access as NATO allies — Australia, Japan and South Korea.
According to US Commerce Secretary Wilbur Ross, move to grant Strategic Trade Authorisation (STA-1) status to India reflects its efforts to improve its own export-control regime, its adherence to multilateral export rules and its growing status as a US defence partner.
STA-1 provides India with greater supply chain efficiency, both for defence, and for other high-tech products.
What is Strategic Trade Authorisation (STA)?
STA allows for license exception with regards to exports from the US. This type of US government authorisation allows a certain item to be exported under defined conditions without a transaction-specific license, according to a report in Descartes Customs Info.
India elevated to STA-1 status benefits :-
- India’s inclusion is beneficial mostly for the purposes of increasing the speed of sale of high-tech defence and non-defence products that are otherwise subjected to strict controls and licensing.
- The move means that India can get easy access to latest defence technologies, with the reduction of the number of licenses needed for exports from the US.
- It is also a boost for the foundational Communications, Compatibility and Security Agreement (COMCASA), according to analysts.
- India and the United States share an interest in countering China’s expanding economic and military weight and the United States has emerged as a top arms supplier to India, selling more than $15 billion of weapons over the past decade as New Delhi modernises its Soviet-era military.
List of items affected :-
According to the US Department of Commerce, items eligible for export to STA-1 nations include those under control for national security, chemical or biological weapons, nuclear non-proliferation, regional stability, crime control.
The categories also include electronics, lasers and sensors, information security, computers and electronics, navigation, telecommunications, aerospace, etc.